Posted on 04/18/2026 5:08:59 AM PDT by MtnClimber
It either demonstrates a deep misunderstanding of facts or is a deliberate action to accelerate the decline of a once-great city.
The Laws of Economics and statistics on the grocery industry clearly show that there is no way, except through subsidies that shift costs onto taxpayers, for Mamdani’s plan for city-run grocery stores to reduce food costs for the city’s residents.
The grocery business is not some gold mine of hidden profits waiting to be tapped. It is one of the most competitive, tightly run industries in this country, with an extremely low profit margin. Companies such as Kroger, Walmart, Target, and Publix don’t survive by accident. They survive because they are relentlessly efficient in cutting waste, managing costs, and competing every single day to keep prices low.
After all that work, after all that efficiency, what do they actually earn? About one to two dollars for every hundred dollars you spend. So when someone tells you the government can step in and dramatically lower grocery prices, you must ask: from where? Where is the money coming from? Where is the fat to be cut?
Because here’s the truth: For every $100 in groceries you buy, the store will have spent (not earned) $75 for the food, sundries, and other items. However, the store does not pocket the $25 difference. Instead, the company must cover:
-Labor (wages and benefits)
-Rent or property costs
-Utilities and insurance
-Credit card transaction fees (1% to 2% for large store groups)
-Transportation and logistics
-Shrinkage of 3% (employee theft out the back door, spoilage, and shoplifters)
-Taxes and regulatory compliance
These operating expenses typically consume 20–24 percentage points of the remaining 25-point gross margin, leaving net profit margins in the range of 1% to 5%, with industry averages near 1.5%–2%.
(Excerpt) Read more at americanthinker.com ...
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All the Mamdani stores will be managed by a socialist who has never accomplished a thing in their lives.
The Bee is all over it 👇
9 Exciting Features Coming To Mamdani’s City-Run Grocery Store
https://babylonbee.com/news/9-exciting-features-coming-to-mamdanis-city-run-grocery-store
All ISLAMamdani has to do is go after the ranchers, the gardeners, the truckers, the property owners, the bankers and other producers to force his utopian plan to fruition.
NYC can suck it up. Enjoy your demise.
Socialists always know best. They pick the winners and the loser cronies until everyone is a loser. Don’t worry, just raise taxes Mandami, that will fix anything.
1.7 million people in NYC get SNAP.
“Mandummy grocery stores will never happen.”
Totally agree.
This reminds me so much of California’s high speed rail boondoggle......just an excuse to grift off the taxpayers.
“Shrinkage of 3% (employee theft out the back door, spoilage, and shoplifters)”
3%.......PFFFT......That number is missing a zero.
A deliberate action to accelerate the decline of a once-great city. Indeed
Mamdani and the likes of him is a reminder of Hitler’s early days speeches before he was elected.
Their ignorance cost them everything and millions ended up dead.
Be aware of the sellers goods
Bkmk
“””It is one of the most competitive, tightly run industries in this country, with an extremely low profit margin.””””
I am not so sure that this is true today for grocery stores.
Likely in the past, but not today.
Why will it 3 years and 30 million to open a grocery store? I bet it never opens.
They are not building a grocery store. They are devising a way to funnel money into campaigns. Follow the money.
There will never be a city run grocery store.
If Mamdani were smart, he’d quickly open up one “show” grocery store. That way, the mainstream media can continue to fawn over him.
The trick would be in picking the right location for this store. First off, it had better not be on a bus line.
How much taxpayer dollars is he secretly giving his muslim brothers in NYC ?
As if some sort of efficient success was the goal.
Is there really a worst way?
Perhaps:
NYC BODEGA, RESTAURANT & NGO BULK BUYING SITE
Step 1: Select the product.
Step 2: Select an offer from a participating wholesaler for the product.
Step 3: Pick a delivery date.
Step 4: Pay for it.
Key Insights on Grocery Profit Margins:
Net Profit Range: Most stores see 1–3%, though industry leaders can reach 3–5%.
2023 Performance: FMI reported that 2023 grocery industry profit margins dropped to 1.6%, a return to pre-pandemic levels.
Gross vs. Net: While items may have a 20%+ markup, high operational expenses (overhead) turn that into a low net profit.
High-Volume, Low-Margin: The business model relies on high inventory turnover rather than high profit per item.
Factors Influencing Margins
Industry Trends: Competitive pricing pressures, high inflation, and supply chain issues keep net profits low.
Specialty vs. Conventional: Specialty grocers (e.g., organic products) may hold higher margins, while conventional stores face steeper competition.
Strategies to Boost Profits: Retailers often increase margins by adopting “grocerant” trends (prepared meals), boosting private-label brands, and increasing efficiencies to cut costs.
Examples: Costco, for example, operates on a different, high-volume model with gross margins typically around 12–13%.
Why Margins Are So Low
High Spoilage: Fresh produce, meat, and dairy have limited shelf life.
Labor Intensive: Significant staffing is required for stocking, check-out, and perishables management.
Price Competition: Customers are sensitive to price changes, making it difficult for stores to increase prices significantly.
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